friends with mickey
DIS Veteran
- Joined
- Jun 15, 2010
- Messages
- 4,290
On the surface, it sounds good. That being said, 30 - 35% is pretty steep for taxes, especially when it is repressive. It takes a much greater amount of money from those who are at the lower end of the economic scale than it does from the ones who are better off. Additionally, the price of things won't change, because businesses won't drop the prices just to allow for the tax cost, which makes everything immediately cost that (tax amount) more. And the city and state sales taxes won't go away, because those entities still need those income streams. So we end up with a real tax rate of closer to 42 - 45%. The Fair Tax is only revenue neutral if everybody keeps buying the way they do now, which cannot happen due to the extra cost of everything. It would take many, many years for consumer goods to get back to their current level of purchasing numbers, if ever...
Don't get me wrong, I believe that our tax system is broken, but I don't think that is the best solution.
Any suggestions, I favor a users tax with necessity items being exempt.